ASM Sc. J.

, 12, 2019
https://doi.org/10.32802/asmscj.2019.289

Electricity Generation Options for a Future Low

Carbon Energy Mix for Malaysia

Cheng Seong Khor1,2 and G. Lalchand2

1
Chemical Engineering Department, Universiti Teknologi PETRONAS,
32610 Seri Iskandar, Perak Darul Ridzuan, Malaysia
2
Academy of Sciences Malaysia, 20th Floor, West Wing, MATRADE Tower,
Jalan Sultan Haji Ahmad Shah off Jalan Tunku Abdul Halim, 50480 Kuala Lumpur

Malaysia’s electricity generation mix is mainly based on fossil fuels, particularly natural gas and
coal with a smaller share of large hydroelectric and non-hydroelectric renewable energy resources.
The present work aims to analyse and assess the ongoing search for alternatives to fossil fuel for
electricity generation that the country has been pursuing both environmental preservation and
national energy security considerations, thereby suggesting the way forward including potential
options to be deliberated. This paper surveys alternative, both practical and theoretical that can be
considered technically and economically attractive for Malaysia over the period to 2050. The
overall national energy supply and demand situation are first analysed to develop projections that
account for the role of renewable energy, particularly that of solar photovoltaic (PV). Next, the
paper discusses the progress achieved, and the current status of the nati onal solar PV industry
presents the advantages or benefits offered and outlines the remaining challenges. In the same
manner, electricity generation from the biogas produced from methane recovery in treating palm
oil mill effluent (POME) is assessed. In the final analysis, the paper considers other potential low
carbon power generation options to make up the Malaysian energy mix, which include small
hydroelectricity, municipal solid waste decomposition in suitably-engineered landfills, nuclear
energy using thorium-based technology, and renewable marine energy particularly ocean thermal
energy conversion (OTEC), in tandem with savings expected from energy efficiency and
conservation (EE&C) initiatives.
Keywords: energy supply; energy demand; energy projections; energy mix; sustainable energy;
low carbon

I. INTRODUCTION (0.8%) (Energy Commission Malaysia 2016c). The search

Malaysia’s primary energy supply consists of oil, gas, coal,
hydroelectric, and renewable resources. The nation’s
electricity generation mix is also largely based on fossil
fuels, particularly natural gas and coal with a small share of
renewable energy (RE) resources, including
hydroelectricity. As of 2015, a major share of the current
generation mix (see Figure 1) is heavily dependent on fossil
fuels (88.4%) with the remaining contribution from
hydroelectric (10.7%) and non-hydroelectric renewables
for alternatives to fossil fuels is vigorously pursued for
environmental and energy security considerations.
Promoting sustainable future energy options augurs well
for Malaysia to reduce the environmental impacts of air
pollution, greenhouse gas (GHG) emissions, and the
resulting climate change effects as well as to contribute
towards waste management and cost control. Energy
generated from indigenous renewable resources enhances
primary energy security and also eliminates pollution from
agricultural residues since a significant proportion of

*Corresponding author’s e-mail: khorchengseong@gmail.com

 ASM Science Journal, Volume 12, 2019
renewables use such materials. A key issue in energy
production and management is how to quickly replace
fuels such as coal and petroleum products, which produce
carbon dioxide besides other toxic emissions, with other
energy sources that can be generated without producing
such emissions.
Figure 1. Malaysia: Electricity generation mix (GWh) in
Malaysia for 2015 (Energy Commission Malaysia 2016c).
(Note: “Hydro” includes mini hydro; “Oil” includes
distillate products; “Others” includes non-hydroelectric
renewables such as biomass, solar, biogas, biomass and
diesel (biodiesel), natural gas and diesel.)
A number of reviews are available covering various
aspects, issues, and perspectives related to the Malaysian
energy landscape particularly on RE (Ahmad et al., 2011;
Hashim et al., 2011; Ong et al., 2011; Shafie et al., 2011;
Mekhilef et al., 2014; Basri et al., 2015). A recent one is by
Oh et al. (2018) with a similar focus on alternative, mainly
renewable forms of energy for the Malaysian energy policy,
which serves as an update to an earlier article by the same
main author and one of the co-authors (Oh et al., 2010).
Ahmad et al. (2014) present a numerical modelling
approach for multiple-criteria decision making (called
analytic hierarchy process) to select RE sources and
technologies for developing a sustainable electricity
generation system for Malaysia. This paper’s authors have
also published a critical review on sustainable options for
electricity generation in Malaysia (Khor et al., 2014),
2
intended as policy advisory representing the views of the
Academy of Sciences Malaysia, which publishes this
journal.
This paper analyses the opportunities for these energy
options for Malaysia by reviewing the progress and status of
renewable energy in Malaysia. By setting the premise of the
present situation, the work aims to examine the prospect of
renewable energy development and uptake in Malaysia,
supported by quantitative analyses, and to highlight the
remaining challenges ahead in the endeavour.
II. CURRENT STATUS OF
RENEWABLE ENERGY IN
MALAYSIA
Malaysia has a variety of RE resources that can be utilised
for carbon free or low carbon electricity generation to
displace reliance on fossil fuels. The available economically
viable options have been detailed in the SEDA mechanism
for the promotion of such renewable energy-powered
electricity generation (Abdul Malek 2010). These have been
restricted to small hydroelectricity, photovoltaic (PV),
biomass and biogas (especially from palm oil plantation
waste), solid waste particularly from municipals (i.e., MSW),
and geothermal energy focusing on the geothermal power
plant development project at Tawau in Sabah. In particular,
Malaysia possesses substantial hydroelectric resource,
especially in the East Malaysia state of Sarawak, which is by
far the largest renewable energy resource deployed in the
country. Large hydroelectric dams are also in operation in
West Malaysia such as in Temengor, Perak and Kenyir,
Terengganu.
The strategy of diversifying the nation’s energy mix by
including RE is aimed at increasing supply reliability and
security by relying less on imported fossil fuels while
continuing to monitor the overall reliability of the electricity
generation and supply system. As regards promoting
sustainability through renewable energy, Malaysia’s
electricity generation mix is planned to be less dependent on
fossil fuels, which currently comprises about 46.3% from
natural gas and 41.0% from coal in terms of energy (Energy
Commission Malaysia 2016c).
On the whole, the major contributors to the planned RE
generation capacity are PV, biomass and biogas, small hydro,
 ASM Science Journal, Volume 12, 2019
waste to energy, and geothermal, as shown in Figure 2.
Other potential RE options that are exploited in many
countries such as marine RE (wave, tidal, and ocean
thermal energy conversion (OTEC)), as well as wind (both
onshore and offshore), have been excluded as their resource
potential in Malaysia and the equatorial zone, in general,
are found to be inadequate for commercial exploitation
(SIRIM 2013).
Figure 2. Installed power generation capacity (MW) (both
on-grid and off-grid) in Malaysia for 2015 (Energy
Commission Malaysia 2016b)
Contribution of renewables to the country’s electricity
generation mix has grown with the implementation of a
feed-in tariff (FiT) scheme under the Renewable Energy Act
2011 (RE Act). The Act was supplemented by the formation
of Sustainable Energy Development Authority (SEDA) as
the legally designated agency for its implementation,
supported by a funding mechanism to pay the increased or
“top-up” tariff under FiT by way of a 1.6% levy on the
electricity bills for affected consumers.
RE Act particularly through FiT aimed to achieve a RE
capacity share of 11% (2080MW) in 2020 and 17%
(4000MW) by 2030 for Peninsular Malaysia (i.e., excluding
Sabah and Sarawak). FiT has promoted electricity
3
generation from renewables, particularly from solar PV
systems as the scheme is very lucrative, and it is easy to
install PV systems quickly. The FiT regime for PV was
terminated in 2017, but FiT for the other RE technologies
remains.
Following the termination of the FiT scheme for PV,
further promotion of PV systems was modified with greater
emphasis on large scale solar (LSS) systems, which is also
called utility-scale solar (USS) systems besides through the
Net Energy Metering (NEM) scheme (see Section IV(A) for
more details) and for self-consumption (SelCo), which
aimed to maintain the high pace growth of solar PV capacity.
These systems do not qualify for any FiT incentive but are
based on NEM for SelCo and consumers’ own, typically
rooftop, installations.
The LSS/USS installations are however subject to tender
auctions by the Malaysian Energy Commission (or
Suruhanjaya Tenaga) at RE tariff rates based on the
tendered quotes. They are paid directly by the authorised
electricity suppliers (i.e., Tenaga Nasional Berhad (TNB) in
Peninsular Malaysia or Sabah Electricity Sendirian Berhad
(SESB) in the East Malaysia state of Sabah, referred to as the
single buyer off-taker) under individual power purchase
agreements.
The NEM and SelCo schemes did not take-off as well as
expected because of perceived unfavourable tariffs offered;
the “net energy” was not on actual net energy metering basis.
The apparent drawback has been rectified recently by a
decision by the Malaysian minister in charge of the energy
portfolio (under the Ministry of Energy, Science, Technology,
Environment and Climate Change or MESTECC) to make
the NEM a true net energy metering and billing system (Yeo
2018). Such change and reclassification of NEM beginning
January 2019 are anticipated to make the financial viability
more attractive to prospective consumers to take advantage
of the revised billing mechanism. Hence, going forward, the
take-up capacity of NEM and SelCo is likely to accelerate.
Also, the MESTECC Minister has announced a revised
national target for RE generating capacity share of 20% by
2025, which excludes large hydroelectric power plants. In
this respect, the large hydroelectric plants are defined as
those with generating capacity of over 100MW (see Table 1
for a list of hydroelectric plants in Malaysia grouped
 ASM Science Journal, Volume 12, 2019

according to this classification). improvement. Adopting a wider range of technologies is

In the Appendix of the paper, Section 9.1 provides a
concise summary of policies related to energy, particularly
renewable energy in Malaysia (see Table 14 and Figure 11).
While various policies, programs, and initiatives have been
undertaken to promote renewable energy in the country,
the level of penetration attained still leaves room for
desirable as it has been acknowledged that there is not a
silver bullet solution to address the energy trilemma of
meeting energy needs for the nation’s growth while ensuring
environmental sustainability and promoting the welfare of
the people.

Figure 3. Malaysia: Current and projected cumulative renewable energy installed capacity (KeTTHA 2008b)

Table 1. Malaysia: Hydropower plants categorised according to generation capacity size

(Energy Commission Malaysia 2015b)
State/River Location Capacity (MW)
Capacity greater than 100MW
Perak Temengor 348
Kenerong 120
Pahang Cameron Highlands (Jor and Woh) 250
Ulu Jelai 372
Terengganu Sultan Mahmud Kenyir 400
Hulu Terengganu 250
Kelantan Pergau 600
Sarawak Batang Ai 108
Bakun 2400
Subtotal 4848

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 ASM Science Journal, Volume 12, 2019

Capacity less than 100MW

Perak/Sungai Perak Chenderoh 40.5
Bersia 72
Upper Piah (Sg. Piah Hulu) 14.6
Lower Piah (Sg. Piah Hilir) 54
Pahang Cameron Highlands 11.9
Kelantan Kenerong Upper 12
Kenerong Lower 8
Sabah Tenom Pangi 69
Subtotal 282.0
Mini-hydro
Perak Sungai Renyok 1.6
Sungai Perdak 0.342
Sungai Bil 0.225
Sungai Kinjang 0.325
Sungai Asap 0.11
Sungai Chempias 0.12
Sungai Tebing Tinggi 0.152
Kedah Sungai Tawar Besar 0.552
Sungai Mahang 0.454
Sungai Mempelam
Terengganu Sungai Cheralak 0.48
Sungai Berang 0.364
Subtotal 4.724
Grant Total 5134.724

III. MALAYSIA’S ENERGY In terms of 2015 energy generation, renewables including

SUPPLY AND DEMAND hydroelectricity contributed 11.6% (16,750GWh) to the fuel
mix; the figure is 0.9% (1226GWh) without hydroelectricity.
A. Current Scenario
While the non-large-hydroelectric renewables share is
forecast to increase to 20% by 2025 (Yeo 2018), its use is
Based on the Malaysian Energy Commission (or
still to complement that of fossil fuels partly due to the
Suruhanjaya Tenaga) data as of 2015 (see Figure 2), the
current renewables installed generation capacity including intermittency effect of solar PV output and ease of access.

large scale hydroelectricity is 5730MW or 19.1% of the fuel Overall, the installed capacity and energy generation shares

mix (Energy Commission Malaysia 2016b). The installed are mainly contributed by fossil fuels and large

capacity excluding large scale hydroelectricity is 957MW or hydroelectricity.

3.2% of the total. Note that the Energy Commission data
may have reported a higher installed biomass capacity
(801MW) than that of the SEDA data (142MW) due to the
Data for 2011 to 2015 shows an average consumption load
factor of about 70%, which is a ratio of electricity consumed
to its maximum demand. Over the same period, an average

inclusion of self-generated electricity (i.e., non-grid capacity factor (ratio of electricity generated to its installed

connected) from palm oil mills. generation capacity) of greater than 50% is indicated for
Malaysia. A study commissioned by the Academy of Sciences
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 ASM Science Journal, Volume 12, 2019

Malaysia reports both factors within the stated range specific strategies that can contribute to such capacity (or
(Akademi Sains Malaysia 2015). demand) decline are indicated although the national energy
efficiency or demand-side management (DSM) initiatives

B. Energy Supply and Demand
Projections
Official statistics on the power generation capacity (in MW)
mix for Peninsular Malaysia with projections to the year
2026 is shown in Figure 4. The projections show a large
capacity increase from 2019 to 2020, which then stays fairly
constant till 2024, but is then expected to decrease. No
appear to be the main rationale for the projected demand
trend. Based on the authors' awareness of similar initiatives
for Denmark and California in the United States, such an
eventuality is unlikely especially because Malaysia has yet to
implement its DSM program (see Figure 5 and Figure
6which show rising energy trend for both locations).
National DSM initiatives, when implemented, can help to
moderate the demand growth rate over time.

Figure 4. Peninsular Malaysia: Power generation capacity (in MW) mix with projections to 2026 (Energy
Commission/Suruhanjaya Tenaga Malaysia 2017)

Figure 5. Denmark: Electricity consumption (projected in TWh), generation, and imports for 2017–2030 (Danish Energy
Agency 2018)

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 ASM Science Journal, Volume 12, 2019

Figure 6. California (USA): Peak energy demand (projected in MW) for 2008–2020 (Kavalec and Gorin 2009)

To compare, such a decline in energy use is only seen after As Malaysia’s energy demand is expected to continue to
about three decades in a country such as Sweden. In the rise (Energy Commission Malaysia 2017), it is imperative for
latter case, the reason can be attributed to its the energy supply sector to ensure adequate generation,
manufacturing industries moving abroad to take advantage transmission, and distribution facilities are in place to meet
of cheaper labor cost, which is partly reflected in its reduced the nation’s needs. The current and projected RE capacities
final energy use in the residential and services sector under different categories of technologies and programs are
observed over more than four decades (1971 to 2013) as tabulated in Table 2.
shown in Figure 7 (Swedish Energy Agency 2015).

Figure 7. Sweden: Final energy use (in TWh) in residential and services sector by energy carrier for 1971–2013 (Swedish
Energy Agency 2015)

However, Figure 8 taken from Energy Commission growth rate in general that can be due to one or a
statistical documents shows a decline in the growth rates of combination of several factors (Sovacool 2010) such as
electricity generation projections after 2015 (Energy increasing energy use efficiency; structural changes in
Commission Malaysia 2017). The forecasts imply reduced economic activities, e.g., from energy-intensive
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 ASM Science Journal, Volume 12, 2019

manufacturing to less energy-intensive service-based part due to energy efficiency and conservation especially by
industries; declining overall economic development; or large consumers through initiatives such as smart buildings
demand-side management initiatives, which have yet to be and high technology or high-efficiency appliances (e.g.,
implemented consistently in Malaysia (Economic Planning chillers). Nevertheless, these projections do not indicate any
Unit, 2018a). The projections by Energy Commission have reduction in the demand, only a declining growth rate.
correctly considered the declining growth rates that are in

Figure 8. Official statistics by Malaysian Energy Commission on forecast versus actual electricity consumption (in GWh)
(Energy Commission Malaysia 2017)

Table 2. Current and projected capacities of renewable energy resources for Malaysia (SEDA 2018; 2019)
Potential Additional
Approved Capacity Installed Capacity Capacity (MW) Total Capacity
Technology
Up to 2020 (MW) Up to 2020 (MW) Tendered Planned Up to 2025 (MW)
(Up to 2022) (Up to 2025)
Solar PV
PV Farm (FiT) 330.16 5.14 n.r. n.r. 335.30
Rooftop (FiT) 98.43 9.32 n.r. n.r. 107.75
LSS/USS 1500 34.5 500 230 2000
NEM 34.53 9.877 500 462 1006.407
SelCo n.r. n.r. n.r. n.r. n.r.
Biomass 396.19 55.00 12.40 0 463.59
Biogas 220.86 20.14 0 0 241.00
Small hydro 538.48 30.30 41.70 32.84 643.32
Waste to energy* 104.42 13.36 30.00 0 147.78
Notes: *Includes landfill, agriculture waste, solid waste; n.r. = not reported

C. Role of Solar Photovoltaic
Malaysia adopts a 25% reserve margin principle of
generation capacity over maximum demand. This means for
a nominal maximum demand of 17.0GW for Peninsular
8
Malaysia; the total generation capacity needs to be about
21.3 GW.
For a pre-year 2020 scenario projection, a target
cumulative solar PV systems of 3.0 GWp of installed
capacity can reduce maximum demand from conventional
 ASM Science Journal, Volume 12, 2019
electricity generation by approximately 2.4GW based on the
actual on-site maximum generation of about 80% of the
nominal capacity due to ambient thermal effect (Nelson,
2011).
For a post-2020 scenario, it is estimated that by installing
about 5.0GWp of solar PV systems capacity, we can reduce
maximum demand by about 4.0GW from 23.5GW to
19.5GW as based on empirical data trends in Figure 9
applied to Energy Commission data for 2017 projected to
2035 (Energy Commission Malaysia 2017). This strategy
can reduce the generation capacity needed (i.e., including a
25% reserve margin) to 24.4GW (i.e., 1.25 times 19.5GW)
instead of 29.4GW (i.e., 1.25 times 23.5GW). Based on
Figure 9. Peninsular Malaysia: Impact of solar photovoltaic (PV) generation on maximum demand.
D. Role of Energy Efficiency and
Conservation
Energy efficiency and conservation (EE&C) serves to reduce
the total electricity demand, thereby increasing the relative
proportion of renewable energy contribution. Thus EE&C is
a contributory component to enhance the relative share of
renewable energy in the national electricity mix. To
illustrate, in the preceding projection in Section III(C) in
which solar PV can potentially reduce maximum demand by
8.0GW, the resultant proportion of renewable energy will
be higher.
9
similar assumptions, doubling the installation of solar PV
capacity to 10.0GWp can reduce maximum demand by
about 8.0GW based on the Outlook 2017 projection, i.e.,
from 23.5GW to 15.5GW in 2035. This reduction is realistic
if it is equal to or higher than the trough demand during the
off-peak consumption. The detailed calculations for the
projections are available in the Appendix.
The maximum power demand can be further reduced
through energy efficiency measures. A preliminary study on
demand-side management (DSM) by the Malaysian
Economic Planning Unit (2018b) estimates a demand saving
of 3.315GW is expected to accrue over the entire DSM
program duration up to 2030.
By the relatively low investment required for their
implementation, EE&C measures are touted as low-hanging
fruits relative to the benefits offered. Further, the initiatives
encourage local participation and ensure community
resilience as they are largely carried out locally. Table 3
summarises the advantages or benefits alongside several
energy efficiencies and conservation initiatives that have
been undertaken (Lalchand 2012; Chin et al., 2013).
Most commercial and some industrial users have
significant air-conditioning cooling loads. The efficiency of
new large centralised chiller technology has improved
compared to that found in older plants. One of the author’s
experiences from energy audits for some commercial
 ASM Science Journal, Volume 12, 2019
consumers show their air conditioning energy use share at
50 to 60% and lighting energy use share at up to 30%. The
share of air conditioning and lighting energy use for
industries are not as well known, but they may be of the
Table 3. Advantages or benefits and initiatives to promote energy efficiency and conservation in Malaysia
Advantages/Benefits
 Energy cost savings for air conditioning and lighting  Implement cogeneration and trigeneration of power
in commercial buildings and industries by better
insulation
 Tax benefits for companies under Investment Tax
Allowance (e.g., for replacing centralised chillers with
newer efficient ones)
 Encourage local participation and ensure community
resilience as they are largely carried out locally
Thus, it is cost-effective to replace older chillers to benefit
from the higher efficiency of new chillers due to current
electricity tariffs and their anticipated increase in line with
the government's declaration to remove fuel subsidies
gradually. This suggestion is more so since such companies
can avail tax benefits (Investment Tax Allowance, ITA) that
the government has provided for the adoption of energy
efficiency and conservation initiatives. Replacing every ton
of refrigeration of centralised chiller plant with more
efficient plant can offer energy cost saving on the order of
about RM528 per annum (based on an estimated saving of
0.5kW per ton of refrigeration on an average operation of
10 hours per day and 22 days per month at average tariff of
0.40RM/kWh) for typical users such as offices, shopping
malls, and hospitals.
To illustrate the magnitude of potential energy saving, we
consider Malaysian statistics for 2015 that reports
10
conservative order of about 10% of their respective total
consumption (KeTTHA 2009). The calculation details for
the estimated saving is given in the Appendix.
Initiatives
and heating and cooling duties to reduce efficiency
losses in transmission and distribution of electric
power
 Replace commonly used tubular T8 fluorescent lamps
for commercial and residential use with more efficient
LED alternatives that give the same lighting level but
at about two-thirds of the energy consumed
 Use 5-star energy efficient refrigerators—KeTTHA has
promoted them under its Sustainability Achieved Via
Energy Efficiency (SAVE) program since 2011
 Replace window or split type air-conditioners with the
5-star or inverter type equivalent models—also
applicable to other home appliances such as televisions
and fans
 Install and enhance insulation for roof, wall, and
window to help reduce cooling power demand
commercial and industrial electricity use to be 36,645GWh
and 43,754GWh, respectively (Malaysia et al., 2015). Thus, a
conservative energy demand saving an estimate of only 10%
for the cooling load equates to about 1,832GWh saving for
commercial users and 438GWh for that of industrial
consumers, making a total saving of about 2,270GWh per
annum. This energy saving implies a demand saving of
about 370MW, hence avoiding a need for power generation
capacity of about 463MW (including a 25% reserve margin).
Based on one of the author’s experience (during his
involvement in the design of the LEO (Low Energy Office)
building for the then Ministry of Energy, Green Technology,
and Water (KeTTHA) in Putrajaya), the actual saving from
replacing old chillers with state-of-the-art energy efficient
chillers can be as much as 25% without sacrificing the
cooling capability required, which gives a correspondingly
higher reduction in maximum demand and generation
 ASM Science Journal, Volume 12, 2019
capacity need.
Similarly, energy efficient lighting for commercial and
industrial users would provide additional saving. Based on
shares of energy used of 20% for commercial and 10% for
industrial users, and conservative prospective saving to be
achieved of about 48% (up to 50%) for T8 fluorescent tubes
replaced with LED, changing existing lighting to the latter
more efficient alternative can save 1173GWh a year. Further,
there can be additional saving for air-conditioning due to a
lighting energy saving of about 20%, which equals to
235GWh. Thus the combined lighting and air-conditioning
energy saving would equate to a demand saving of about
229MW, implying a reduction in power generation capacity
required of about 287MW.
The total potential energy saving from using energy
efficient lighting and replacing existing older centralised
chillers with new more efficient units can be as much as
3677GWh, which would equate to a demand reduction of
600MW. Allowing for a 25% reserve margin, this would
Table 4. Estimated annual saving through representative energy-efficient device replacement initiatives
Energy-Efficient Device Electricity Saving
Replacement Initiative
Chilling in industrial and commercial sectors
Lighting in industrial and commercial sectors
Air conditioning in the residential sector
Total Saving
IV. NATIONAL-LEVEL
INITIATIVES FOR
RENEWABLE ENERGY
DEVELOPMENT
Since the middle of the 2000, several efforts have been
undertaken nationwide to spur the development and uptake
of renewable energy in Malaysia (Chua et al., 2010; Oh et
al., 2010). Two such initiatives are delineated, namely
developing a national solar energy industry and producing
biogas through methane emissions recovery from the palm
oil mill effluent (POME) treatment process.
equate to a reduction in required power generation capacity
of 750MW.
Energy-efficient air-conditioners can contribute an annual
saving of 76.65GWh per year up to a total potential saving of
919.8GWh. This estimate is made by assuming 1 million
units are changed (or installed) annually with 20% (i.e.,
200,000 units) being the energy-efficient 5-star air-
conditioners over a 12-year period (thus giving a total
replacement of 2.4 million out of 12 million units) with a
conservative 25% energy saving for an average daily use of 6
hours at 70% utilisation factor. Carrying out such
replacement of domestic air-conditioners can reduce
demand by 975MW and power generation capacity by 1.219
GW.
Table 4 Summarises the estimated annual saving in terms
of energy, cost, and capacity from these initiatives, which
amounts to a total on the order of 3,181 MW corresponding
to 13,604GWh per year with a cost saving of RM16.0 billion.
Cost Saving Demand Reduction
(GWh/year) (RM) (MW)
2,270 9.08 billion 370
11,257 4.50 billion 1,836
76.65 2.39 billion 975
13,604 16.0 billion 3,181
A. Development of National Solar
Energy Industry
1. Progress and status
Malaysia has established grounds in the solar photovoltaic
manufacturing industry since First Solar; a USA-based
company began its operations in Malaysia in 2007 with four
manufacturing lines in Kulim. The initiative continued with
the Malaysia Building Integrated Photovoltaic (MBIPV,
2005–2011) project administered by the Malaysian Ministry
of Energy, Green Technology and Water (KeTTHA) and
supported by the Global Environment Facility (GEF)
through the United Nations Development Programme
(UNDP) (Haris et al., 2009). The industry has expanded to
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 ASM Science Journal, Volume 12, 2019

become a major economic development sector with
international market reach (Academy of Sciences Malaysia
2010). After First Solar, several other international
companies have set up solar PV manufacturing facilities in
Malaysia such as SunPower (USA) (SunPower Corporation
2014) and Hanwa Q Cells (Germany) (Hanwa Q Cells
GmBH 2014).
The ongoing Net Energy Metering (NEM) scheme allows
industrial, commercial, and residential consumers to install
rooftop solar PV systems for self-consumption and for the
excess electricity to be exported to the national grid at a set
selling rate or displaced cost. However, the overall response
has been dismal (Joshi, 2018). The TNB-declared displaced
cost is fixed at 31 cent/kWh for low voltage connection but
only 23 cent/kWh for medium voltage connection, which is
lower than the current average generation cost of 26.39
cent/kWh (see Figure 10 for a delineation of the tariff cost
structure), thus disincentives the NEM scheme (Energy
Commission Malaysia 2016a). As mentioned earlier in
Section II, this deficiency has since been addressed through
an announcement in October 2018 to offer a selling rate
equal to the tariff rate (Yeo 2018). Further as has also been
stated, under the 11th Malaysia Plan, ST has continued to
pursue establishing a national solar energy generation
industry by approving contract awards to implement solar
PV projects of the order of 30 to 50MW per plant size
through the LSS/USS program starting in 2017 (see Table 5
for details of the awarded generating capacity). The target is
to achieve a total capacity of 1000MW by 2020 or 250MW
per year on average (SEDA 2017).

Table 5. Malaysia: Large scale solar (LSS)/Utility scale solar (USS) project contracts awarded
Commercial Peninsular Sabah (and Total Total Capacity
Award Round
Operation Year Malaysia Labuan) Projects (MW)
Cycle 1 2017/2018 383.996 16.9 18 400.896
Cycle 2 2019/2020 506.388 50.6 40 556.988
Cycle 3 2021/2022 220 50 8 270
Total 1110.384 117.5 66 1227.884

Generation 2. Advantages and benefits

The creation of a large scale national solar PV industry has

26.39 ¢/kWh
realized the following advantages and benefits to the nation:
Transmission Level setting up a new technology sector with high growth
potential that creates thousands of job opportunities,
3.66 ¢/kWh
establishing Malaysia as a world-leading solar PV
Subtransmission Level 30.05 ¢/kWh
equipment manufacturer using imported technology,
generating revenues with direct returns for reinvestment for
8.24 ¢/kWh
Distribution the industry and contribution to national gross domestic
(Primary & Secondary)
product (GDP), and providing direct benefits to local
38.29 ¢/kWh
0.24 ¢/kWh industries that form part of the value chain (Academy of
Retail 38.53 ¢/kWh Sciences Malaysia 2010).

Figure 10. Electricity base tariff components and their

associated costs as implemented under the Malaysian
Government’s incentive-based regulation (IBR) framework
(Energy Commission Malaysia 2016d)
3. Technical and commercial
challenges
Several supporting governmental strategies have been
implemented to build a national solar PV industry, namely

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 ASM Science Journal, Volume 12, 2019

by nurturing a conducive market environment, enhancing
industry participation, building the required infrastructure,
and promoting research, development, and innovation.
These initiatives are summarised in Table 6. Further efforts
to ensure a sustainable national solar PV industry
necessitate the need to address the management of
hazardous waste generated during the production phase
through proper treatment of its effluent. In the foreseeable
future, we face challenges associated with the disposal of
end-of-life solar PV panels (Larsen 2009; International
Renewable Energy Agency (IRENA) 2016; Malandrino et al.,
2017).

Table 6. Supporting governmental strategies to build a national solar PV industry in Malaysia

Strategy Plan
Nurture a conducive market  Promote public awareness and implement advocacy programs
environment  Install solar PV systems in government buildings and promote Green Building
Index (GBI) compliance

 Design a long-term national energy policy based on renewable energy particularly

solar PV
Enhance industry  Intensify human capital development through industry missions, sponsored
participation exchange programs such as apprenticeships, and training abroad

 Facilitate partnerships between multinational companies and local industries

 Upgrade targeted local industries to solar PV-related activities (e.g., wafer
fabrication in the electronics industry) to leverage on lower costs, lower entry
levels, and faster implementation

 Introduce industry demonstration and quality programs and award schemes

Build infrastructure  Introduce business facilitation packages, e.g., soft loan schemes and focus grants
for local industries to enter and expand

 Promote intellectual property acquisition and foreign direct investments with a

focus on direct benefits for local industries to trigger domestic direct investments

 Identify government or government-linked company (GLC) investments in new

promising solar PV technologies and catalyse development, incubation, and
creation of fast spin-off companies
Promote research,  Design and implement a national solar PV research and development (R&D)
development, and innovation roadmap with a focus on technology innovation and cost reduction

 Establish internationally-certified test facilities and solar PV R&D centre to

support required activities

 Increase R&D budget for technology and process development with constant
industrial monitoring and feedback

 Establish review and an advisory committee comprising local and international

experts

 Enhance collaboration between industry and academia

 Exploit the Brain Gain Malaysia program with a special focus on solar PV
technology

 Foster growth of technopreneurs

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B. Methane Recovery and Biogas over 20 years and 21 to 25 times over 100 years. This
Production from Palm Oil Mill problem has been exacerbated by an increasing number of
Effluent Treatment
palm oil mills in Malaysia from just about 10 mills in 1960 to

1. Progress and status 454 operating mills in 2017 (Malaysian Palm Oil Board
2018), and oil palm has the largest agricultural plantation
It is now mandated for all palm oil mills to recover or avoid acreage and production in the country compared with other
methane gas emissions in treating the wastewater discharge major crops (Department of Statistics Malaysia 2017).
of palm oil mill effluent (POME) to meet regulatory A life cycle assessment study on Malaysian palm oil
discharge limits. There is potential to use the methane for milling reveals that uncaptured methane emissions from
electricity and heat generation subject to appropriate POME contributes the highest environmental impact
treatment and upgrade to suitable quality as biogas (Wu et towards climate change in the country and is responsible in
al., 2010). making the overall industry, not environmental friendly
The Malaysian Government’s Economic Transformation (Subramaniam et al., 2008). The unrecovered and
Programme (ETP) under Entry Point Project 5 (EPP5) unutilised methane-rich biogas from the aerobic
requires palm oil mills to install facilities to generate biogas decomposition of the POME wastewater treatment process
or avoid methane emissions by 2020 (PEMANDU 2010). has also been highlighted in a post-evaluation of the BioGen
The biogas can be used internally within a mill through co- project (Aldover et al., 2010). Additionally, the potential
firing with biomass or replacing the fuel in a boiler to revenue from generating bioenergy may be used to offset
generate steam and chilled water. In the former approach, POME treatment cost. Based on the reported amount of oil
there is an opportunity to use fewer biomass sources such palm fresh fruit bunch processed in 2015, an estimated
as oil palm mesocarp fibres and make them available for 548MW of electricity can potentially be generated
other downstream higher value uses. Another possibility is (assuming power output at 40%) (Astimar et al., 2017).
to supply the captured biogas to local communities through
pipelines or in bottles (Malaysian Industry-Government 3. Technical and commercial
Group for High Technology (MIGHT) 2013). A mill can also challenges

supply the biogas-generated electricity to the national grid

By 2020, it is not allowed by regulations to treat POME in
to get additional income under the Feed-in-Tariff scheme
Malaysian palm oil mills through the current conventional
(SEDA (Sustainable Energy Development Authority of
way of using open ponds or lagoons (i.e., open digesting
Malaysia) 2012). As of July 2017, biogas plants have been
tanks) because valuable biomethane is released to the
constructed at 94 mills in Malaysia with another eight
atmosphere in such systems besides being a GHG emission
facilities under construction while 144 sites are under such
source (Loh et al., 2017). An alternative to converting the
planning (Astimar et al., 2017).
bulk of POME to biomethane is to use a closed anaerobic
digester system in the first treatment stage to handle the
2. Advantages and benefits
high organic matters in the wastes. A covered lagoon system
can be installed directly and cost-effectively using floating
Trapped biogas from palm oil milling sector to be used as
plastic membranes on open ponds; in that way, the released
an energy source can potentially avoid about 17 million
tonnes (Mt) (1.7 x 107) of CO2 equivalent (CO2e) (Astimar et biomethane is captured and retained within the floating

al., 2017). In particular, unrecovered methane emissions covers (Lam et al., 2011). Such a biogas capture system has

from POME that escape to the atmosphere may contribute been applied in Malaysia in flaring, as boiler fuel in power

towards greater global warming and climate change, and heat generation, and as feedstock in hydrogen
production (Tong et al., 2004; 2005; NOVAVIRO
because methane is a more potent greenhouse gas that has
Technology Sdn Bhd 2010). Moving forward, we can employ
72 times the global warming potential of CO2 measured
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 ASM Science Journal, Volume 12, 2019

high-rate anaerobic digesting tank systems for optimal
biogas generation to produce electricity (Najafpour et al.,
2006; Poh et al., 2009; Ahmed et al., 2015). However, to
benefit from the FiT scheme incentive by connecting to the
national electricity grid, a constraint is the remote location
of most mills. In this regard, we advocate implementing a
smart grid for renewable resources remote from the
national grid (Electric Power Research Institute (EPRI)
2008). An example pertains to mills in Sabah, in which it is
expected to be costlier to subsidise diesel generation than to
put up a smart grid interconnection to a few such mills.
Malaysia by 2020 (KeTTHA 2008a).
Second-generation fuels (such as bio-oil) derived from
palm oil biomass offers more advantages at least from an
ethical perspective in replacing fossil fuels by obviating
competition and conflict with human food supply and
animal feed. An estimate indicates the potential of
generating 1340MW grid-connected electricity from palm
biomass by 2030 (Haris et al., 2009) (Malaysian Industry-
Government Group for High Technology (MIGHT) 2013).
The Malaysian National Innovation Agency (AIM, now non-
operational) has created a biomass processing hub in the
East Malaysian state of Sarawak, which is billed as the first

V. EMERGING RENEWABLE of such a facility in Southeast Asia. The hub receives

ENERGY OPTIONS FOR investment from Brooke Renewables, a consortium of
ELECTRICITY
GENERATION IN international biofuel companies and includes a commercial
MALAYSIA second-generation bioethanol plant supported by enzyme
technology from Beta Renewables, which operates the
Several electricity generation alternatives from low carbon
world’s first second-generation bioethanol plant in Italy
energy options are available or currently considered under
(Crescentino) (PEMANDU (Performance Management &
various development stages in Malaysia. They include the
Delivery Unit of Malaysian Government) 2013).
following (in no particular order): small hydroelectricity
Apart from methane recovery from POME, biogas can also
(Table 7), fuels and electricity from oil palm biomass,
be produced from landfills in Malaysia by decomposing
municipal solid waste decomposition (Table 9), thorium-
municipal solid waste (MSW). The captured landfill gas
based nuclear power (Table 10), ocean thermal energy
(LFG) can be upgraded to pipeline-quality gas to produce
conversion (OTEC) (Table 11), and hydrogen using fuel cells
electricity or directly as fuels for powering homes, factories,
(Table 12). This section provides an overview of the
buildings, and vehicles. It is easier to design a new and
advantages or benefits within the Malaysian context and
sanitary landfill for LFG utilisation than retrofitting at a
delineates several challenges faced for these alternatives. A
later stage as shown through the Bukit Tagar project by
summary of the potential of these options considered is
KUB–Berjaya Enviro, which operates a 4-MW gas engine to
given in Table 13.
generate electricity and is reported to be in process of
Small scale hydropower stations offer low operating cost
connecting a larger capacity to the grid (as of end of 2018)
besides the reliability of employing a mature technology. A
(KUB–Berjaya Enviro 2019). There is potential in
small hydroelectric facility is especially suitable for
harnessing and further developing waste-to-energy options
implementation in locations far away from the main
using MSW to produce bioenergy forms in Malaysia (Chien
electricity grid that faces difficulty to receive grid-fed power
Bong et al., 2017).
supply (Ong et al., 2011). According to SEDA statistics,
As for nuclear energy, addressing its real and perceived
there are 60 applications with feed-in tariff approval for
dangers is of the utmost importance for its deployment in
small hydropower projects in 2017. The cumulative capacity
Malaysia, which may have generated greater concern in light
of 538.48MW of small hydropower projects are in progress
of the Fukushima Daiichi accident in 2011. In this regard,
under the FiT scheme with a total commissioned installed
use of thorium as a main fuel cycle for nuclear power shows
capacity of 30.30MW with annual energy generation of
potential, particularly liquid fluoride thorium reactors
64.60GWh in 2017 (SEDA 2018). An estimated 490–
(LFTR) as compared to uranium which is the basic material
500MW of small hydropower is potentially available in
in today’s commercial technology. However, the present
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 ASM Science Journal, Volume 12, 2019
Malaysian political administration helm, which changed
after its 2018 general election does not favour nuclear
power use (Malaysiakini 2017). Further, nuclear may no
longer be considered the cheapest clean power type given
the declining production cost of solar and biomass power
(SEDA 2017).
Energy from OTEC uses heat from the Sun stored in ocean
surface water layers to generate electrical energy or energy
products (Jaafar 2015). Although argued to be one of the
main potential renewable energy sources in Malaysia
(Academy of Sciences Malaysia 2015), the entailed high
capital and operating cost remains its biggest challenge to
be economically viable. Implementation of OTEC remains
to be at a pilot scale such as the 1MW demonstration unit
carried out in Hawaii (Vega, 2010; Jaafar, 2017).
Potential exploitation of geothermal energy resource
revolves around the Apas Kiri area in Tawau, Sabah based
on data around the year 2008. The discovery of this
Table 7. Advantages and challenges of power generation from small hydroelectricity
Advantage
 Reliable (mature technology)
 Low operating cost
 Low levelized cost of electricity
 Not affected by fossil fuel prices
 No environmental and socioeconomic consequences
(as compared to large hydropower)
 Also provides flood and irrigation control
 Promotes eco-tourism
 Suitable for places far away from the main grid, e.g., an
alternative to diesel generators for remote villages in
Sabah and Sarawak
Table 8. Advantages and challenges of energy generation from oil palm biomass
Advantage
 The abundance of palm biomass resource
 Several technologies available for conversion of
biomass to energy
16
resource with an electricity generation potential of 67MW
was made by the Minerals and Geoscience Department
under the purview of the then Ministry of Natural Resources
and Environment. However this initiative led by Tawau
Green Energy Sdn. Bhd. reportedly has been abandoned
(Editorial of Malay Mail 2018).
Fuel cells using hydrogen has been identified as a national
priority research area (especially during 1996 to 2007 with
up to RM34 millions of federal grant money) by the then
ministry-in-charge (Ministry of Science, Technology, and
Innovation (MOSTI), now subsumed under MESTECC). It is
noteworthy that hydrogen is an energy carrier, not a primary
energy source unless it is generated from non-fossil fuel
resources (e.g., via electrolysis of water). On the other hand,
fuel cells are not a RE resource by themselves; they are
energy conversion mechanisms.
Challenge
 Remote location for connecting to the national
electricity grid to capture advantage given by FiT
scheme
Challenge
 High capital investment
 Inconsistent biomass supply chain
 Unattractive electricity tariff for grid-connected
generation
 ASM Science Journal, Volume 12, 2019

Table 9. Advantages and challenges of energy generation from municipal solid waste (MSW) landfill gas
Advantage Challenge

 Highest methane generator in Malaysia; expected to Heterogeneous feedstock has varying sizes, shapes, and

rise with more MSW generated due to increased compositions that need pre-treatment to avoid unsteady

population and urbanisation besides poor recycling operation and uncertain product quality (in this regard,

 Captured biogas can be upgraded to pipeline gas to refuse-derived fuel as a form of processed MSW form is

generate electricity or as fuels not viable because of the high cost)

Table 10. Advantages and challenges of nuclear energy generation using thorium-based technology (Mathieu, 2006;
Cooper et al., 2011; Forsberg et al., 2011; Schaffer, 2013)
Advantage Challenge

 Thorium is more abundant in nature than uranium and  Significant deviation from current operating
available in Malaysia (4500 ton) commercial technologies

 Thorium extraction (e.g., in rare earth metals mining),
although complex incurs relatively cheap chemical
separation from its ore impurities
 Low amount of radioactive waste production, storage,
and disposal
 No commercial operating unit yet, hence difficult to
assess design and performance
 Political hurdles for commercial deployment

 Resistance to nuclear weapon proliferation

 Higher thermal efficiency and power generation
efficiency at less cost

 Inherently safe thus potentially avert catastrophic

accidents

 Relatively smaller radiation risk

Table 11. Advantages and challenges of ocean thermal energy conversion (OTEC) development
Advantages Challenge

 Generation potential of up to 105 GW of electricity is
estimated from harnessing the heat in the water depths
of over 700 m off Sabah and Sarawak in East Malaysia
as based on a marine survey by the Malaysian
government of the South China Sea
 Can generate spinoff products that include temperate
foods and produce, marine culture, lithium metal,
mineral water, cosmetics, and health products.
 Plant cost is prohibitive at EUR80–100 per watt
(RM395–495 per watt) of electricity produced for a 1
MW plant size (Jaafar 2017)
 High cost to transmit generated electricity to land
(onshore) particularly for the cable
 Significant electricity transmission losses due to large
distance (a few hundred kilometres) involved

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Table 12. Advantages and challenges of energy generation from hydrogen using fuel cells
Advantages Challenges

 A fuel cell is considered the most viable energy  Low efficiency

conversion device for hydrogen especially in  Hydrogen source needs to be renewable to render it as
transportation sustainable
 Certain fuel cell variants (e.g., proton exchange  Safe transportation means to end users
membrane type) can be coupled with solar PV
(Academy of Sciences Malaysia 2017)

Table 13. Summary of the potential of emerging renewable energy options considered for electricity generation in Malaysia
Electricity Source Projected Availability Remark
Biomass from oil palm/Palm Annual projected biomass Has the potential to provide 1.3 GW
biomass availability (in 2012) = 94.00 of electricity but constrained by
million ton (wet weight) (Malaysian other economic uses and assured
Industry-Government Group for availability of feedstock resources
High Technology (MIGHT) 2013)
Geothermal 79 manifestation areas (61 in Minimal resources available and not
Peninsula, 8 in Sarawak, 10 in cost-economic to explore (further
Sabah (REEP, 2010) Malaysia is out of the Ring of Fire)
Wind, wave, tidal No official statistics reported No resource viably exploitable in the
country
Hydrogen-based fuel cell Power capacity = 20,198 MW Low efficiency; hydrogen source has
(capacity factor = 0.9) and energy to be renewable to render this as a
generation 54.162 GWh (share = plausible option. Economic viability
15.7%) by 2050 with hydrogen has yet to be established.
generation contribution by OTEC,
wave, tidal current, solar PV, and
nuclear (based on projection of zero
fossil fuel used for energy
generation by 2050) (Academy of
Sciences Malaysia 2015)

VI. CONCLUSIONS as well as to attain a 20% non-large-hydroelectricity RE

share of generation capacity by 2025, with small
The preceding discussions have considered the potential hydroelectricity, biomass, biogas, and municipal solid waste
and practically viable options for Malaysia to aim for low contributing smaller shares.
carbon power generation options for the future, and show Also, diligent adoption of energy efficiency initiatives and
that it can be achieved to a certain degree. As evidenced practices is expected to contribute a significant share under
through the paper, Malaysia has limited practical RE the DSM program which is expected to be rolled out with the
options to achieve its low-carbon aspirations, with solar PV forthcoming legislation for the Energy Efficiency and
being the dominant resource, both to help achieve the self- Conservation Act in 2019. RE from wind energy, marine RE
declared carbon intensity reduction target of 45% by 2030 resources and even geothermal (in Sabah) appear to be not

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 ASM Science Journal, Volume 12, 2019

available or viable for Malaysia to exploit, while the nuclear
option is avoided on safety and political considerations.
Solar PV in its various modes such as rooftop and ground-
mounted farms built to date and the approved LSS/USS
systems form the bulk of RE capacity. Similarly, anticipated
greater take-up of NEM and SelCo with the revised true net
energy metering as approved with effect from January 2019
can greatly enhance the share of the low carbon RE
generation capacity going forward.
Also as mentioned in the paper, the potential to harvest
the biomass and biogas generation capacity can be
significantly enhanced with the recommendation to develop
biomass–biogas grids to encourage and incentivize the
exploitation of these resources, especially to build up
adequate generation capacity in the east-coast region of
Sabah, where generation capacity shortfall has contributed
to poor supply reliability. With judicious strategies and cost-
effective incentivisation, the 20% RE share can be exceeded
by 2025 to enhance national energy security while
contributing to the global carbon emissions reduction
challenge.
VII. APPENDIX
A. Energy and Renewable
Energy Policies in Malaysia

Table 14. National-level policies and programs related to renewable energy in Malaysia
Period Policy/Plan Aim Achievement/Status
1979 National Energy Policy Address energy supply, utilisation, and Diversified energy supply
environmental objectives in the long term sources to non-renewables
1981 Four-Fuel Diversification Avoid overdependence on petroleum as Diversified energy supply
Policy the main energy supply by an increased sources besides petroleum
emphasis on gas, hydroelectric, and coal especially coal use for power
in power generation mix generation
1999– Malaysian Industrial Remove barriers and build capacity to Developed benchmarks,
2009 Energy Efficiency improve industrial energy efficiency equipment rating programs, and
Improvement Project through policy, planning, research, and auditing; documented and
(MIEEIP) implementation for 11 sectors: wood, disseminated information;
food, pulp and paper, rubber, iron and trained local energy service
steel, ceramic, glass, cement, plastics, companies; demonstrated and
textile, and oleochemicals implemented technologies
2000 Fifth Fuel Policy Recognise renewable fuel sources in Promoted renewable energy
generation mix that includes biomass, generation and use besides large
biogas, municipal waste, solar, and mini hydroelectricity
(not large) hydroelectricity
2001 Energy Commission Act Establish Energy Commission (or Established Energy Commission
Suruhanjaya Tenaga) as a regulator of whose role includes advising the
electricity and piped gas supply government on energy efficiency
industries and renewable energy issues
2001– Small Renewable Energy Encourage small private power Met less than targeted 5% of
2010 Power (SREP) program generation projects using renewables renewable electricity supply by
2005
2002– Biomass-based Power Reduce GHG emissions growth rate from Finalized Renewable Energy
2010 Generation and fossil fuel-fired combustion of unused Power Purchase Agreement

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 ASM Science Journal, Volume 12, 2019
Cogeneration in the biomass wastes through power
Malaysian Palm Oil generation and combined heat and power
Industry (BioGen) (CHP); also explores another energy
potential
2005– Malaysia Building  Reduce solar PV technology cost in the
2011 Integrated Photovoltaic long term by integrating with building
(MBIPV) design
 Create sustainable BIPV market
through wide applications
2006 National Biofuel Policy Use environmentally sustainable biofuels
to reduce fossil fuels dependence, exploit
the global economic opportunity, and
stabilise crude palm oil prices
2009 National Green Technology Increase capability and capacity in green
Policy technologies to contribute to economic
growth in energy, buildings, water and
waste management, and transport sectors
2010– New Energy Policy (2013– Enhance energy security in economic,
2015 2050) environmental, and social aspects
through market pricing, energy
efficiency, change management, holistic
governance, and supply-side initiatives
2011 Renewable Energy Act Set up SEDA to implement a feed-in-
tariff (FiT) scheme for RE
2011 National Biomass Strategy Recognise biomass waste use mainly for
2020 high value-added products (especially in
the palm oil industry)
2011– Biodiesel B5 Program Implement palm-based biodiesel (B5
2014 blend) use countrywide; reduce crude
palm oil local inventory to stabilise its
price
2016– Demand Side Management Implement demand-side initiatives on
2020 (preliminary study) electrical and thermal energy in building,
20
(REPPA) Pro-forma (precursor
to FiT under SREP); established
business facilities (e.g., one-stop
centre); conducted mill energy
audits and policy and biomass
availability studies
Connected 45.9MW to the
national grid (versus Ninth
Malaysia Plan target of 350MW)
Implemented B5 blend palm-
based biodiesel use countrywide
(see another entry)
Set up Green Technology
Financing Scheme (GTFS)
under Pusat Tenaga Malaysia
(later called GreenTech
Corporation); promoted
cogeneration and renewable
energy use in power generation
Adopted market-based gas
price; implemented
Sustainability Achieve Via
Energy Efficiency (SAVE)
program by SEDA; developed
marginal natural gas fields;
building PETRONAS RAPID
refinery and petrochemical site
Implemented FiT system under
SEDA’s purview
Marketed high-quality solid
fuels of briquette or pellet from
palm biomass waste (empty
fruit bunch)
Biodiesel blended locally =
295,451 tonne (2014); total
installed capacity = 2.1 million
tonne
Increase registered electrical
energy managers and energy
 ASM Science Journal, Volume 12, 2019

industry, household, and transport service companies; implement

sectors energy performance contracting
including to retrofit 100
government buildings;
introduce an enhanced time of
use electricity tariff (targets are
set to the year 2020)
2016– Net Energy Metering Complement FiT by effecting electricity Award 500MW quota over 5
2020 (NEM) (and Self- self-consumption from solar PV and years (annual maximum of
Consumption (SelCo, allowing excess electricity generated to be 90MW for Peninsula and 10MW
2017)) sold to TNB for Sabah)
2017– Large Scale Solar (LSS) Develop solar PV plants that generate 1– Award projects quota of
2020 50MW electricity 1000MW over 4 years (annual
200MW for Peninsula and
10MW for Sabah)
2016 Biodiesel B7 and B10 Increase to B7 and B10 biodiesel blends Field trials for B10 palm
programs including for commercial and power biodiesel (e.g., by MPOB)
generation use showed good engine
performance with no
modification needed
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Figure 11. Malaysia: Timeline of energy-related policies and initiatives

B. Energy Efficiency Saving

Estimations for Electricity Use in
Cooling Load

The efficiency of older chillers = 1.2kW per ton of refrigeration.

The efficiency of newer chillers = 0.7 kW per ton of refrigeration.
Efficiency gain = (1.2 – 0.7) = 0.5 kW per ton of refrigeration.
Annual operating time = (10 hour/day) × (22 day/month) × (12 month/year) = 2640 hour/year.
Annual electricity saving = (0.5kW/ton refrigerant) × (2640 hour/year) = 1320kWh/ton refrigerant-year.
Commercial electricity tariff (average) = 0.40RM/kWh.
Annual electricity cost saving in commercial sector = (0.40RM/kWh) × (1320kWh/ton refrigerant-year) = 528RM/ton
refrigerant-year
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C. Energy Efficiency Saving

Estimations for Electricity Use in
Air Conditioning

Assumption on user population: 8.0 million domestic

(residential) users, 1.0 million commercial users, 0.1 million
industrial users.

Table 15. Energy efficiency saving estimations for electricity use in air conditioning
Sector No. of User (in a million) No. of Unit Per User Total No. of Unit (in a million)
Domestic 8.0 (household) 40% with 3 unit
Commercial 1.0 5 unit 5.0
Industrial 0.1 2 unit 0.2
Total = 14.8

Assumption: 20% energy-efficient 5-star air-conditioners, 80% older 3-star refrigerators.

Total no. of air-conditioners to be replaced = 80% × (14.8 million) = 12 million units.
The assumption on air-conditioners replacement rate: 1 million unit/year over the next 12 years.
Assumption: 20% of replaced air-conditioners are 5-star split wall mounted units.
Number of energy efficient units installed annually = 20% × (1 million) = 200,000 units.
Assumption on air-conditioners use: 6 hours/day at 70% utilisation factor (i.e., operating load factor = 0.7) => (0.7) × (6
h/d) = 4.2kWh/day.
Daily energy saving per unit = 25% × (4.2kWh/day) = 1.05kWh/day.
Annual energy saving per unit = (0.42kWh/day-unit) × (365 day/year) = 383.3kWh/year-unit.
Total annual energy saving = (383.3 kWh/year-unit) × (200,000 unit) = 76.65GWh/year.

Cumulative energy saving over replacement period = (76.65GWh/year) × ∑12

𝑌𝑒𝑎𝑟=1 𝑌𝑒𝑎𝑟 = 5979TWh.

D. Energy Efficiency Saving

Estimations for Electricity Use in
Lighting

Table 16. Energy efficiency saving estimations for electricity use in lighting
Nominal Load Actual Load Energy Saving versus LED Energy Saving Ratio for
(W/tube) (W/tube) (W/tube) LED Replacement (%)
Fluorescent T8 36 42 20 (42–22) 48
Fluorescent T5 28 30 8 (30–22) 27
LED Tube 18 22 - -

The following calculations are based on Energy Commission Malaysia (2015b) data for the year 2015 as applied to the
commercial sector.
Lighting share of annual electricity used = 20% × (36,645GWh) = 7329GWh.
Assumption on electricity use: 60% T5, 20% LED, and 20% other lamp types (e.g., compact fluorescent tubes).
Annual electricity use for T5 tube = 60% × (7329GWh) = 4397GWh.
Annual energy saving if T5 is replaced by LED (after 4 years) = 27% × (4397 GWh) = 1173 GWh.
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 ASM Science Journal, Volume 12, 2019

Assumption: Air-conditioning coefficient of performance = 5.0.

Additional saving from air-conditioning = (1/5.0) × (1173GWh) = 235GWh.
Cumulative energy saving due to lighting efficiency (after 12 years) = (9381 + 1876) GWh = 11,257GWh.
Assumption: Load factor for commercial use = 40%; reserve margin = 25%.
Electricity demand saving = (11,257GWh)/(40% × (8760 h/year)) = 1836MW.
Generation capacity saving (reduction) = (1836MW) × 125% = 2295MW.
A similar procedure can be applied to the industrial sector. The total saving from both sectors gives the estimates reported in
the main text of the paper.

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